COMMISSIONER OF INCOME TAX DEL vs. M/S K. & CO.

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ITA/655/2004HC DelhiDLHC01017133200416 February 2017Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI2 pages

AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the question of law framed in ITA 655/2004 was the same as in the connected appeals (ITA 60-61/1999 and others) which were disposed of by a judgment dated 14.02.2013. In that prior judgment, the questions of law were answered against the Revenue and in favour of the Assessee. This decision was subsequently followed in ITA 208/2003 by a judgment dated 29.10.2015 (CIT v. M/s K and Co.). Therefore, applying the precedent, the question of law in the present appeal is answered against the Revenue and in favour of the Assessee. The appeal is accordingly dismissed.

What were the facts?

This case involves an appeal by the Commissioner of Income Tax (Revenue) against an order concerning M/s K. And Co. (Assessee). The appeal, ITA 655/2004, was admitted on 18.01.2005, to be heard with other appeals (ITR Nos. 60 and 61/1999) for the assessment year 1989-90. The core issue revolved around the taxation of tickets sent to stockists, with the Revenue contending it was a sale on dispatch. A related issue in the connected appeals concerned depreciation of commercial vehicles. The judgment references a prior decision in ITA 60-61/1999 and connected cases dated 14.02.2013, which answered the questions of law against the Revenue. This prior decision was also followed in ITA 208/2003 by a judgment dated 29.10.2015 (CIT v. M/s K and Co.).

What were the issues?

1. Whether the transaction of sending tickets to stockists constitutes a sale on dispatch, thereby making it taxable upon dispatch (question of law). The Revenue contended that the transaction was a sale on dispatch. The Assessee's arguments are not explicitly recorded in this judgment, but it is implied they contested the Revenue's position. The judgment notes that the question of law framed in this appeal was the same as in connected matters. The connected appeals (ITA 60-61/1999 and others) dealt with the taxation of tickets sent to stockists and depreciation of commercial vehicles. The questions of law in those appeals were answered against the Revenue.

AI-generated summary — verify with the full judgment below

$~R-28 * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 655/2004

COMMISSIONER OF INCOME TAX, DELHI ..... Appellant

Through: Mr. Raghvendra Singh, Advocate.

versus

M/S K. AND CO.

..... Respondent

Through: None.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI

O R D E R %

16.02.2017

The earlier order dated 18.01.2005 in this appeal records as follows: - “Issue notice to the Respondent to show cause why the appeal be not admitted.

Mr.Santaram accepts notice on behalf of the assessee.

We have heard learned counsel for the parties. Let these appeals be heard together with ITR Nos. 60 and 61/1999 for the assessment year 1989-90 in regard to the same assessee. They shall be finally heard and will obviously abide by the result of the question of the law referred in that case.

ADMIT.

To be listed in the category of „„Regular Matters” as per its own turn.”

ITA 655/2004

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The issue involved pertained to taxation of tickets sent to stockists; the Revenue had contended that the transaction was a sale on dispatch. The related issue in that batch of appeal pertained to depreciation of commercial vehicles.

ITA 60-61/1999 and connected cases were disposed of by a judgment dated 14.02.2013; the questions of law framed were answered against the Revenue. That judgment was subsequently followed in ITA 208/2003 by judgment of 29.10.2015 (CIT v. M/s K and Co.). In these circumstances, the question of law framed is answered against the Revenue and in favour of the assessee. The appeal is accordingly dismissed.

S. RAVINDRA BHAT, J

NAJMI WAZIRI, J FEBRUARY 16, 2017 /vikas/

ITA 655/2004

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